Florida Legislature Advances Bitcoin Investment Bill, Expands to NFTs and Tokenized Assets

The Florida Legislature is spearheading efforts to modernize its investment portfolio by embracing digital assets, with Bitcoin (BTC) at the forefront. This proposal, however, goes beyond just Bitcoin, now including non-fungible tokens (NFTs), tokenized securities, and digital asset-based exchange-traded funds (ETFs). The move signifies a growing shift in Florida’s approach to the evolving landscape of blockchain technologies.

Florida Bitcoin Reserve Bill: Modernizing Public Funds

Representative Webster Barnaby of the Florida House has reintroduced a pivotal piece of legislation—HB 183, known as the "Florida Bitcoin Reserve Bill." This bill builds on an earlier attempt (HB 487) from 2025, which focused solely on Bitcoin but ultimately failed to pass. HB 183 expands the scope of investable assets, aiming to integrate blockchain-backed digital assets into the state's investment strategy.

Under the proposed legislation, "digital assets" are defined as cryptographically secure representations of value or rights recorded on blockchain or similar distributed ledger technologies. The bill outlines investments in not only Bitcoin but also tokenized assets like tokenized securities, NFTs, and ETFs that focus on the digital asset market. These changes aim to modernize Florida’s public fund allocations while introducing stricter compliance and custody standards.

Allocations and Economic Impact

The bill places a cap on digital asset investments, limiting them to no more than 10% of select public funds. These funds include the General Revenue Fund, the Budget Stabilization Fund, and the Florida Retirement System Trust, which collectively manage approximately $220 billion.

Even a modest allocation of 1% would represent a $2.2 billion infusion into Bitcoin and other blockchain-based assets. Representative Barnaby has advocated for the proposal as a strategic move to bring Florida’s public fund investments in line with modern financial technologies while reinforcing security and oversight mechanisms.

Enhanced Security and Risk Control

HB 183 revolves around stringent security measures to safeguard public investments in digital assets. These assets must be stored either by the state treasury, accredited custodians, or ETFs registered with the Securities and Exchange Commission (SEC). In cases where asset control is lost—due to custody errors or key mismanagement—the bill mandates restoration within five business days.

Moreover, loans backed by digital assets will require full collateralization with no room for overleverage. Taxes and fees paid in digital assets must undergo immediate conversion to U.S. dollars before being deposited into state accounts, minimizing fiscal exposure to cryptocurrency price fluctuations.

Florida’s Digital Asset Strategy in a National Context

Florida’s legislative initiative aligns with a broader trend amongst state governments in the U.S. to address digital asset reserves as part of public investment strategies. States like Arizona, New Hampshire, and Texas have already moved forward with their own frameworks to adopt blockchain technology:

1. Arizona authorizes up to 5% of funds in digital assets with a market capitalization exceeding $500 billion, currently limited to Bitcoin.
2. Texas has opted for a Bitcoin-only reserve fund as part of its financial strategy.

Additionally, Florida’s bill highlights the federal "Strategic Bitcoin Reserve" executive order issued in March 2025. This national policy officially recognizes Bitcoin as a store of value and a liquidity tool, strengthening the case for its inclusion in public sector investments. The alignment with federal policy showcases Florida's commitment to pioneering blockchain-backed financial options.

Catalyzing Broader Adoption

Florida’s renewed effort to incorporate digital assets into its investment framework may set the stage for accelerated adoption of blockchain technologies in the public sector. By diversifying its portfolio and incorporating NFTs, tokenized securities, and digital asset ETFs, the state is positioning itself as a leader in integrating cutting-edge financial instruments into traditional investment strategies.

As digital assets gain traction across public and private sectors, Florida’s forward-thinking approach could influence other states to follow suit, reshaping how U.S. state governments view blockchain technologies. The bill represents a step toward modernizing public financial management while boosting market transparency, security, and strategic growth opportunities.